A trader allows a 25% discount on the marked price and still makes a profit of 20%. If the cost price of the article is ₹1,200, what is the marked price?
Show answer & explanation
Correct answer: C
Explanation
Cost Price (CP) = ₹1200
Profit = 20%
Therefore, Selling Price (SP) = 1200 × 120/100= ₹1440
Offering a 25% discount means the selling price is 75% of the Marked Price (MP).
Therefore, MP × 75/100 = 1440
MP = 1440 × 100/75
MP = ₹1920